The outstanding debt of Berstin Corp.has five years to maturity,a current yield of 6%,and a price of $95.Assume the debt has a face value of $100.What is the pretax cost of debt if the tax rate is 30%?
A)4.2%
B)4.8%
C)6.9%
D)7.3%
E)7.7%

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The Answer of The outstanding debt of Berstin Corp.has five years to maturity,a current yield of 6%,and a price of $95.Assume the debt has a face value of $100.What is the pretax cost of debt if the tax rate is 30%?
A)4.2%
B)4.8%
C)6.9%
D)7.3%
E)7.7%

The Outstanding Debt of Berstin Corp